Index posts 2.7pc weekly gain amid positive indicators

Trading on the stock exchange commenced on a positive note in the outgoing week fuelled by the contraction of the trade deficit by 42 per cent on a year-on-year basis to $5.3 billion in the first quarter of 2023-24. Arif Habib Ltd said the expectation of robust financial results for the first quarter of the ongoing fiscal year kept the stock market participants’ interest alive. Urea and DAP sales witnessed a jump of 11pc and 68pc, respectively, in September on a year-on-year basis. Furthermore, cement despatches in the same three-month period reported an increase of 23pc on an annual basis. Moreover, cut-off yields of three-month treasury bills and three-year Pakistan Investment Bonds (PIBs) witnessed a decline of 29 basis points and 15 basis points, respectively, in the auction held in the outgoing week. Inflation climbed up to 31.4pc in September. Meanwhile, the ongoing decline in international oil prices and a consistent appreciation of the rupee against the dollar eased some of the investors’ concerns about inflation. The rupee closed at 282.69 against the greenback after appreciating 1.8pc from a week ago.